Nonprofit Lending Landscape Analysis

Nonprofit organizations delivering government-contracted services in New York City can sometimes face delays in receiving reimbursement for the services that they provide. These delays can result in cash flow challenges which, depending on the financial condition of the organization, may inhibit their ability to deliver services or lead to other operational challenges. In some cases, the only viable option for organizations in such a situation is to seek external working capital financing to manage the lag between service delivery and reimbursement.

A range of working capital financing options for New York City nonprofits exist, from commercial banks to nonprofit loan funds to foundations and funders with ad-hoc lending programs. This report outlines those options and what nonprofit leaders can expect in approaching each type of lender.